Since the last report, the Governor delivered his record setting Fiscal year 2025 $55.9 billion budget message on February 27^th and the budget highlights include a record investment in school funding and increase in tax relief with $2.2b allocated to the Anchor program.  Additionally, the budget contains a full pension payment of $7.1Billion, a reinstitution of the Corporate Business Tax surcharge retroactive to January 1, 2024 to fund New Jersey Transit.  There are increases in school meal funding, maternal health, $10m increase in the ARRIVE together crisis management program, fighting veterans homelessness initiatives and a $5m nursing workforce initiative.  The budget message was met with partisan and business organization opposition to the CBT surcharge reinstitution, increased spending and the "buck a truck' proposal on trucks delivering products to warehouses.  Several coalitions have been formed to oppose these measures.

The legislature also has taken up major OPRA reform (S2930) which is supported by public entities and opposed by the press association, organized labor citizens action, housing advocates and journalists.  Both the Senate bill and Assembly bills were amended and released from Committee and the assembly version second referenced to another committee for additional amendments.  Sponsor Senator Sarlo stated that there will be more amendments before the bill is posted for a full senate vote. 

S2822 (Lagana) is posted for Senate Committee consideration and changes the maximum rate for workers compensation attorney fees from 20 to 25%.  The insurance industry is opposed and believe that this bill is "better" than last years version in that this is no change to judicial discretion or the way the fee itself is calculated.  All the bill changes is the maximum possible rate to 25%.  The Senate continues to focus on affordable housing fixes as well as clean energy initiatives.  The Assembly and Senate both have voting sessions on March 18^th and will then break until May while the Senate Budget and Appropriations Committee and Assembly Budget Committee hold public hearings in late March and all of May preparing the budget which must be approved by both the Assembly and Senate and signed by the Governor by June 30, 2024.  

David A. Smith

Princeton Public Affairs Group